Section 79 CPA: Procedure for mediation

Section 79 of Consumer Protection Act: Procedure for mediation

Official Bare Act Text

Override / Mandate Mens Rea (Intent) Actus Reus (Conduct) Punishment Limitation Monetary

(1) The mediation shall be held in the consumer mediation cell attached to the District Commission, the State Commission or the National Commission, as the case may be.

(2) Where a consumer dispute is referred for mediation by the District Commission or the State Commission or the National Commission, as the case may be, the mediator nominated by such Commission shall have regard to the rights and obligations of the parties, the usages of trade, if any, the circumstances giving rise to the consumer dispute and such other relevant factors, as he may deem necessary and shall be guided by the principles of natural justice while carrying out mediation.

(3) The mediator so nominated shall conduct mediation within such time and in such manner as may be specified by regulations.

Legal Commentary & Landmark Judgments: Section 79

Section 79 governs the conduct and procedure of consumer mediation, mandating strict confidentiality, informal natural justice, and a thirty-day completion timeline extendable up to sixty days.

Informal Procedure Free from CPC and Evidence Act: Directs that mediation proceedings shall be conducted informally, guided by fairness and natural justice, unhindered by the strict provisions of the CPC or the Indian Evidence Act.
Strict Thirty-Day Statutory Timeline: Mandates that mediation must be concluded within thirty days from the date of the first appearance, with a maximum discretionary extension not exceeding thirty additional days (total 60 days).
Absolute Statutory Confidentiality: Imposes strict confidentiality on all communications, proposals, offers, and documents exchanged during mediation; no statement or admission made can be disclosed or used as evidence in subsequent litigation.

Key Landmark Precedents:

Moti Ram v. Ashok Kumar (2011) 1 SCC 466: A 2-Judge Bench of the Supreme Court held that mediation proceedings are strictly confidential; mediators and parties are barred from disclosing settlement proposals or admissions to the court, and courts cannot record who was unreasonable during mediation.
Afcons Infrastructure Ltd. v. Cherian Vakkachan (2010) 8 SCC 24: The Supreme Court emphasized that confidentiality is the lifeblood of mediation; without absolute statutory confidentiality, parties cannot negotiate freely or make compromising offers.

Courtroom Practice & Strategic Litigation Guidance:

Parties can exchange sensitive settlement offers during Section 79 mediation without prejudice to their legal defenses, as Section 79 guarantees statutory immunity against disclosure. If the 30-day window expires while productive terms are being drafted, file a joint request for extension within the statutory 60-day cap.

Section 79: Procedure for mediation

Section 79 of Consumer Protection Act: Procedure for mediation

Legal Commentary & Landmark Judgments: Section 79